Contract farming and sesame productivity of smallholder farmers in Western Tigray, Ethiopia

Figures & data

Table 1. Summary and test statistics of farmers.

	CF (n = 248)	NCF (n = 149)	Mean difference	t-Test p-value
Variables	Mean	Mean
Farmer experience	5.13	3.55	1.58	0.000***
Household size	3.84	3.82	0.02	0.913
Age of respondents	40.23	35.15	5.08	0.000***
Total arable farm size	6.56	4.25	2.31	0.000***
Fertilizer used	613.60	267.60	346	0.000***
Educational status	8.97	8.18	0.79	0.000***
Crop variety	0.60	0.55	0.05	0.310
Yield	17.93	14.14	3.79	0.000***
Access to extension service	0.60	0.61	−0.01	0.970
Daily Labor employed	4.00	3.37	0.63	0.016**
Gender	0.70	0.57	0.13	0.011**
Marital status of respondents	0.95	0.83	0.12	0.000***
Farm-size planted sesame	4.85	4.13	0.72	0.017**

Source: Data analyzed by author, ***and** refers significance level at 1% & 5%, respectively.

Figure 1. Local polynomial regression result of all households.

Panel 1: Volume of Sesame Harvested vs. Land Planted with Sesame, Panel 2: Productivity of Sesame vs. Land Planted with Sesame for contract farmers.

Figure 2. Local polynomial regression result of the two groups.

Panel 3: Productivity of Sesame VS. Farm Size Cultivated by Contract Farmer, Panel 4: Productivity of Sesame VS. Farm Size Cultivated by Non-Contract Farmer.

Table 2. Results of matching algorithm.

Matching algorithm method	No, of controls	No, of treats	ATT	Test statistics
Stratification	233	133	1.26	1.01
Radius	217	142	0.81	0.91
Nearest neighbor	80	149	0.59	0.33
Kernel	217	149	0.13	0.11

Source: Data analyzed by author.

Table 3. Endogenous switching regression result for contract farming participation.

Variables	Contract Farmers (n = 248)		Non-contract Farmers (n = 149)
	Coefficient	Std. Err	Coefficient	Std.Err
Total Farm size owned (ha)	−0.02	0.02	0.26	0.18
Household size (No.)	0.13	0.09	0.08	0.12
Labor employed (quantity)	0.97***	0.10	2.12***	0.26
Farming experience (years)	0.82***	0.07	0.55***	0.14
Fertilizer use (KG)	0.04***	0.00	0.03***	0.00
Seed variety (1= yes, 0 = no)	3.49***	0.38	1.62***	0.41
Land planted Sesame (ha)	0.86***	0.12	0.47**	0.23
Formal Schooling (years)	0.51***	0.10	−0.06	0.08
Age of farmers (years)	−0.10***	0.01	0.01	0.02
Access to extension services (1 = yes, 0 =no)	0.10	0.28	−0.71**	0.32
rho_1	0.05	0.37
rho_2	0.96	0.01
sigma_1	3.35	0.18
sigma_2	1.88	0.11
Dependent variable = Sesame Productivity

Source: Data analyzed by author, ***1% significance level, **5% significance level.

Table 4. Impact of contract farming on sesame productivity.

	Decision stage
Transitional heterogeneity	Contract farmers	Non-contract farmers	Treatment effect
Contract farmers	14.14	10.89	3.24
Non-contract farmers	18.42	17.94	0.47
Heterogeneity effect	−4.27	−7.04	2.77

Source: Data analyzed by author.

Data availability statement

Both authors declare and agreed that data will be made available on request.